Cyprus: Fourth Review under the Extended Arrangement under the Extended Fund Facility and Request for Modification of Performance Criteria
IMF Staff Country Reports, July 2, 2014
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- Cyprus: Fourth Review under the Extended Arrangement under the Extended Fund Facility and Request for Modification of Performance Criteria
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Bibliographic details
- Published: July 2, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498349796.002
Program status and recent actions
- The program remains on track.
- Fiscal targets for the first quarter were met with considerable margins.
- Domestic payment restrictions were fully lifted.
- The coop sector was consolidated.
- The authorities intensified efforts to overcome delays in the implementation of structural measures.
Major findings and focus
- The paper focuses on Cyprus’ Fourth Review Under the Extended Arrangement Under the Extended Fund Facility (EFF) and Request for Modification of Performance Criteria.
- Three key policy challenges identified:
- (1) addressing the high level of nonperforming loans;
- (2) maintaining fiscal sustainability;
- (3) strengthening institutions to support fiscal consolidation efforts and long-run growth.
Risks
- Risks to the program remain significant, in particular those related to still strong macro-financial linkages.
Subject classification and keywords
- Subject: Banking, Credit, Financial institutions, Loans, Money, Nonperforming loans, Public debt, Revenue administration
- Keywords: authority, CR, Credit, disbursement of SDR, Europe, Global, government approval, ISCR, Loans, Nonperforming loans, policy implementation, privatisation program, prudent budget execution, restructuring effort, SDR